The U.S. Dollar is trading in weaker ranges ahead of a busy day with the Federal Reserve talking monetary policy and markets awaiting resolution to the armed conflict in the Middle East.
Overview
Thus far, Iran’s infrastructure for exporting crude oil has not been damaged, but there is fear that there could soon be issues to shipping. Oil prices have fluctuated a bit, but remain near their 5-month high, while equities continued to head downward. Businesses have to pay attention to potential inflationary pressures developing that can make long-term planning even more chaotic, adding the variable of inconclusive tariffs.
Everyone is eagerly awaiting any signs of hope towards a ceasefire, a return to negotiating a nuclear deal, anything that can give markets a breather over the prospect of an expanded war. The Buck has no clarity in the midst of all this, already having a tough year, today’s downward turn halted the best session the U.S. Dollar had in a month. After what could be a tumultuous day for Trading, we catch a break as MonexUSA offices will be closed tomorrow in observance of the Juneteenth holiday.
What to Watch This Week…
- Monex USA Online is always open
The complete Economic Calendar can be found here.
EUR ⇑
The Euro is back to gaining ground over the Dollar after a bit of reprieve and with possible room for further appreciation. Data is making the Euro-zone look like it has achieved certain goals previously set as inflation is being held in control. May’s Consumer Price Index showed that the European Central Bank’s goal of taming price growth and keeping its growth around 2.0% yearly average has been accomplished. Number came in at 1.9% after the previous reading was 2.2% with the month coming in flat. Next week we will get a look at productivity with the HCOB survey for Purchasing Manager’s Index for June.
MXN ⇑
The Mexican Peso is recovering after having lost 1.0% of its value from a short-lived Dollar rally. The Peso continues to be a beacon of resilience with its levels still some of the best since Summer of last year. Surprisingly, the currency has been able to stay afloat even after the release of Aggregate Demand and Supply for Q1 coming in at a contraction of (-0.2%), a change from the end of 2024 when it expanded by 1.9%. Overall, anxiety over political issues developing in Mexico did not sink the currency but rather tariffs and tensions over trade with its largest partner caused business as well consumer demand to take a hit. Nevertheless, MXN is not weakening, at least not yet.
